HIP Replacement
Posted by Hesham Sabry Apr 6th, 2009, in Property
From 6 April 2009 there will be some key changes being made to the Home Information Pack (HIP) requirements relating the to the sales of homes in England and Wales.
1. A HIP must be available on the first day a property is marketed
2. A Property Information Questionnaire, completed by the seller, must be included in the HIP
For the uninitiated, a HIP is essentially a collection of key documents which must be compiled by the seller of a property to assist potential buyers.
On 6 April 2009 the temporary marketing exemption will expire, meaning that from this date it will be unlawful for the marketing of a property to begin unless a HIP is available. The following documents are a minimum requirement before marketing can begin:
• Property Information Questionnaire
• Energy Performance Certificate or Predicted Energy Assessment
• Sustainability Certificate (new homes only)
• Sale Statement
• Land Registry Documents.
All other required documents, including searches and leases (where applicable), should be added to the HIP as soon as they are available and must be included in the HIP within 28 days of the first day of marketing.
The Property Information Questionnaire is being introduced as a compulsory requirement for residential properties marketed for sale on or after 6 April 2009. The PIQ should be completed by the seller and must be included in the pack before marketing of a property begins. The intention of the PIQ is to provide the buyer with a helpful checklist of information as they walk round the property. It is not intended as a replacement for enquiries made during the conveyancing process but should help reduce the opportunity for surprises coming to light further down the line as part of this process.
What do the changes mean for a seller?
On a practical level, a seller will now need to ensure that their estate agent is armed with full information about their property as early as possible prior to their property being marketed. This is especially important if the seller wishes to proceed with a sale (and possibly a related purchase) quickly. It will be the responsibility of an estate agent to ensure that the index of the HIP states which documents are missing and what steps are being taken to obtain them.
With regard to the PIQ, a seller must try to be as detailed as possible when answering the questions. This is because the answers will be treated as representations made by the seller, and any statements which are subsequently found to be untrue or incorrect may enable a buyer to take action against the seller for any losses they suffer as a result of relying on the incorrect information. If a seller is unsure as to whether to include a particular piece of information, the safest way is to include it.
6 Comments
By Sarah Jackson on April 24th, 2009
Very informative. You’ve certainly answered all my questions, and saved me a phone call or two!
By Sarah Jackson on April 26th, 2009
Hi.
Seeing as though you’ve managed to answer all my questions, iro the Home Information Pack, I was wondering if you’d be able to provide some further advice?
I am considering marketing my property privately for a couple of reasons; To save on estate agent fees which should help soften the blow of the lower property valuation. Secondly, when I have spoken to estate agents, about the HIP, they ( I’ve spoken to several) seem rather vague on the subject. I find this a little worrying considering they say they can arrange the HIP for me, and are supposed to be there to advise both myself and potential buyers.
I was of the opinion that it may be more beneficial, especially in the current economic crisis, to go it alone and just arrange my HIP through a solicitor. Would you agree with this or is it, in your opinion, not worth the saving for all the hassle trying to find a buyer privately may bring? Who would take responsibility for managing the index of the HIP if I do decide to find a buyer privately?
Thanks.
Sarah.
By Hesham Sabry on April 28th, 2009
Hi Sarah
If you are selling the property privately without an estate agent, you could compile the HIP yourself or you could instruct a solicitor to put it together for you.
You, or your solicitor, would need to obtain Land Registry title documentation relating to your property together with a completed Property Information Questionnaire and local authority and drainage & water search results. The HIP must also contain an Energy Performance Certificate. A seller (or their solicitor) would generally need to liaise with a third party agent in order to obtain this.
A HIP index and sale statement would complete the package of documents. If a private sale was arranged, the HIP index would be the responsibility of the seller. The index is basically a list of the documents which are included in the HIP. This should be kept up to date as additional documents are added.
I trust the above is of assistance. If you need any further information then please do not hesitate to contact our residential conveyancing team.
Regards
Hesham
By Sarah Jackson on April 28th, 2009
You’ve been very obliging. Thanks very much.
I’ve assumed that the sale statement is the list of items included/excluded in/from the sale.
Best Regards,
Sarah.
By Hesham Sabry on April 30th, 2009
Sarah
The sale statement is a simple document which provides basic information about the property to be sold.
The statement should set out the name of the seller and the property being sold, whether the property is freehold, leasehold or commonhold, whether the property is registered or unregistered and whether or not the property is being sold with vacant possession.
The document you mention is a fixtures, fittings and contents form. Whilst this is traditionally provided by the seller, it is not a compulsory part of a HIP.
Regards
Hesham
By Eric Hundin on April 6th, 2009
I found your blog on MSN Search. Nice writing. I will check back to read more.
Eric Hundin